India posted a record year in proceeds from initial public offerings (IPOs) in 2025, yet by December a sizeable share of newly listed stocks was trading below their issue prices. That divergence points to a growing challenge for India’s regulators — sustaining investor confidence as IPO activity grows.
Over the 2025 fiscal year, 80 IPOs on India’s main stock exchanges raised about Rs 1.63 lakh crore (US$19 billion). On a calendar-year basis, more than US$22 billion was raised across over 100 major listings, placing India among the world’s busiest IPO markets.
The investor base also broadened. The total number of demat accounts — holding accounts used by Indian retail investors — crossed 210 million in October 2025, a month in which 33 offerings collectively raised Rs 39,140 crore (US$4.6 billion). Much of this momentum came from domestic investors — households, mutual funds, insurance companies and other local institutions — at a time when foreign flows were uneven.
But strong demand for listings did not guarantee strong performance after trading began. By December 2025, nearly half of new listings traded below their issue price. Several consumer-technology and platform companies slowed or postponed their listing plans as global uncertainty increased and valuations became harder to sustain.
